💳 Understanding Safety Deposits and Damage Waivers
Safety Deposits
A safety deposit is a refundable hold or charge on a guest’s card to cover potential damages or missing items.
The hold or charges placed 2 days before check-in. Even if guests enter the card details days before, the payment method will only be validated 2 days before check-in.
It is automatically released 2 days after checkout, though some banks may take up to 14 days to process.
In the case of card holds, we can hold the deposit for a maximum of 30 days. For longer stays, the hold will auto-renew— a new hold will be process, and the previous hold will be released. Please inform your guests in advance, as they will see this as a new charge on their card.
You can choose to collect the deposit at any point during the stay and until 48 hours after check-out if there were any damages.
Damage Waivers
A damage waiver is a non-refundable fee that covers accidental damage up to a set amount.
It helps reduce friction for guests and can increase booking conversions.
It is not a substitute for full insurance and does not cover negligence or rule violations.
The waiver is typically set at a fraction (≈ 25%) of what you might charge for a full safety deposit.
🔐 3D Secure (3DS) Verification
Some banks require an extra verification step (3D Secure) when placing a deposit hold or charge. Banks might ask to verify the hold via a one-time passcode, app notification, or SMS.
To ensure a smooth check-in experience:
Let guests know that they may be asked to approve the transaction via their bank’s app or SMS.
Use friendly automated messaging, such as:
“You’re one step away from completing your check-in! Please approve the payment through your bank’s secure 3D process.”
⚖️ Choosing Between a Safety Deposit and a Damage Waiver
Both options protect your property — the difference lies in guest experience and payment structure.
Fee Type | Refundable? | Cost to Guest | Best For |
Safety Deposit | ✅ Yes | Higher amount (held or charged) | Higher-value or higher-risk properties |
Damage Waiver | ❌ No | Lower one-time fee | Lower-risk or high-volume properties |
Offer Both Options | ✅ / ❌ Depends | Guests choose between refundable deposit or non-refundable waiver | Flexible approach that improves guest experience and increases booking conversions |
💰 Recommended Pricing
Damage Waiver Guidelines
Average nightly rate under $100 → around $25 waiver
$100–$250 nightly rate → around $35 waiver
$250–$1,000 nightly rate → around $50 waiver
$1,000+ nightly rate → around $100 waiver
Safety Deposit Guidelines
Commonly set around 100% of nightly rate or $100–$500+, depending on property value and risk level.
🗣️ Communication Tips
Clearly explain what each fee covers and when it will be charged or released.
If you use safety deposits, remind guests that the release time depends on their bank.
Always note if a fee is refundable (deposit) or non-refundable (waiver).
Include these details in your pre-check-in or verification messages.
Ensure your fee policies comply with local laws, refund regulations and booking channel guidelines.
Set up automated messages to send to guests when 3DS verification is required
📝 In summary
Use safety deposits to strengthen accountability and reduce risk, and damage waivers to simplify the guest experience. Transparent communication around timing, coverage, and 3D Secure verification helps prevent confusion and builds trust.
| Damage Waivers | Safety/Security Deposits |
Description | A damage waiver is a non-refundable fee that guests pay to cover potential damages up to a certain amount during their stay. This fee acts as a form of self-insurance for the business. | A safety deposit is a refundable amount held on the guest's credit card to cover any damages or missing items. |
Price Range | $25 to $100 | $100 to $500+ |
Benefits | Higher Acceptance | Guest Accountability |